Consideration

Question 1

What is consideration?

Answer 1

The thing each party puts into the contract. (Chappell v Nestle) The value must be sufficient but not adequate (White v Bluett)

Question 2

Performance of an existing contractual duty?

Answer 2

Not good consideration as you’d be doing what you were bound to do. (Stilk V Myrick)

Question 3

Performance of an existing contractual duty (exception 1)?

Answer 3

Doing something extra (Hartley V Ponsonby)

Question 4

Performance of an existing contractual duty (exception 2)?

Answer 4

If the party gains a benefit and avoids a detriment (Williams V Roffey)

Question 5

Consider Economic Duress !!!

Answer 5

!

Question 6

Past Consideration?

Answer 6

Not good consideration. By the time the agreement takes place, consideration is already done. Since it’s past, It’s not valid (Re McArdle)

Question 7

Past Consideration Exception?

Answer 7

Implied a promise of payment for the task before the consideration is done. (Lampleigh v Braithwaite)